Fundamental Payroll Certification Fundamental Payroll Payroll Reporting and Compliance 3 — Questions and Answers
Question 1: Which agency must employers notify when an employee's wages are subject to a child support income withholding order?
- The IRS
- The state child support enforcement agency (Correct answer)
- The Department of Labor
- The Social Security Administration
Correct answer: The state child support enforcement agency
Employers must remit withheld child support payments to the state child support enforcement agency, which then disburses funds to the custodial parent.
Question 2: Under the Electronic Federal Tax Payment System (EFTPS), by what time must a tax deposit be initiated on the due date to be considered timely?
- Midnight EST
- 8:00 p.m. ET the day before (Correct answer)
- 5:00 p.m. local time
- Close of business on the due date
Correct answer: 8:00 p.m. ET the day before
EFTPS payments must be initiated by 8:00 p.m. Eastern Time the day before the due date to be credited on time.
Question 3: An employer has a semiweekly deposit obligation for payroll taxes. For wages paid on Thursday, when is the deposit due?
- The following Monday
- The following Wednesday (Correct answer)
- The following Friday
- 15 days later
Correct answer: The following Wednesday
For semiweekly depositors, taxes on wages paid Wednesday through Friday are due by the following Wednesday.
Question 4: What is the purpose of Form 8809 in payroll compliance?
- To request a penalty waiver for late deposits
- To request an extension of time to file information returns (Correct answer)
- To correct a previously filed W-2
- To report non-employee compensation
Correct answer: To request an extension of time to file information returns
Form 8809 is used to request an automatic 30-day extension of time to file information returns such as W-2s and 1099s.
Question 5: Which penalty applies when an employer intentionally disregards the requirement to file correct information returns?
- $60 per return
- $310 per return
- $570 per return (Correct answer)
- No penalty if the error is corrected
Correct answer: $570 per return
The penalty for intentional disregard of information return filing requirements is $570 per return (indexed for inflation), with no annual cap.
Question 6: For FUTA purposes, when does an employer's FUTA tax rate qualify for the maximum 5.4% credit against the 6% gross rate?
- When all state unemployment taxes are paid on time and the state has no outstanding federal loans (Correct answer)
- When the employer pays no state unemployment taxes
- When the employer's state UI rate is below 2%
- When all employees are exempt from FUTA
Correct answer: When all state unemployment taxes are paid on time and the state has no outstanding federal loans
The full 5.4% FUTA credit is available when all required state unemployment taxes are paid timely and the state has no outstanding Title XII federal loans.
Question 7: What is the maximum amount of wages subject to the Social Security (OASDI) tax for 2024?
- $147,000
- $160,200
- $168,600 (Correct answer)
- $176,100
Correct answer: $168,600
The Social Security wage base for 2024 is $168,600; wages above this amount are not subject to OASDI tax.
Fundamental Payroll Certification Fundamental Payroll Payroll Reporting and Compliance 3
Which agency must employers notify when an employee's wages are subject to a child support income withholding order?